Assessing the Reshaping of Retail Consumer Patterns in England

Topic: Assessing the Reshaping of Retail Consumer Patterns in England: A Comprehensive Study on the Long-term Effects of the Covid-19 Pandemic on Consumer Behaviour

TABLE OF CONTENTS

CHAPTER 1 1

INTRODUCTION 1

1.1 Background 1

1.2 Problem Statement 2

1.3 Research Objectives 3

1.4 Research Questions 3

1.5 Significance of Study 4

1.6 Justification of the Study 5

1.7 Scope and Limitations 5

1.7 Structure of the Dissertation 6

CHAPTER 2 7

LITERATURE REVIEW 7

2.1 Introduction 7

2.2 Virus SARS-CoV-2 (COVID-19) 7

2.3 Consumer Behavior 9

2.3 Factors affect retail consumers 10

2.4 Short-Term Impacts of COVID-19 on Consumer Behavior 11

2.5 Long-Term Effects 12

2.6 Emerging Trends and Future Directions 13

2.5 Literature Gap 13

CHAPTER 3 15

METHODOLOGY 15

3.1 Introduction 15

3.2 Research Design 15

3.3 Data Generation Methods 16

3.4 Data Analysis Methods 17

3.6 Ethical Considerations 18

References 20

Appendix A 25

Survey question 26

Appendix B 27

Interview Question 27

CHAPTER 1: INTRODUCTION

1. Background

The development of new purchasing behaviour during and post-pandemic is no longer the habit of shopping by people but by the complex forces of society, economy, and technology that guide people in making a decision. The catalyst function of the pandemic implied consumers reconsidering the cores and edges of their lives, which led to the formulation of the rules that were used for basic needs. UV factors like this that the public has never seen before are the innovation in online purchasing and cashless payments that are fueled by security and hygiene. The digital rise came as a necessity as soon as the lockdowns. Consumers are buying more and more online as the new lifestyle dictates (Nanda et al., 2021). The pandemic also generated a silver lining in terms of businesses' resilience and adaptability. These innovations made them change policies towards service delivery and supply chain logistics. Economy unrest has resulted in changes in consumption behaviours among people, and consequently, all types of spending (discretion and non-discretion) have been influenced to some extent. The changing patterns and practices in consumption behaviours because of the revolutionary and long-term effects of the remote work styles, the lost social interaction and the changed consumption mode are solid proof that consumption pattern is primarily shaped by social force. The shifting patterns of consumption behaviour influenced by the COVID-19 epidemic are a result of the interdependent health issues, tech progress and economic growth, which caused the social attitude to alter (Filimonau et al., 2022).

The Corona SARS-CoV-2 virus, also known as COVID-19, has quickly and extensively disseminated worldwide since March 2020, resulting in a pandemic. The COVID-19 pandemic has resulted in a significant loss of life in several regions around the globe. The global dissemination of the 2020 COVID-19 pandemic commenced during the initial quarter of that year. Various nations have imposed territorial restrictions to manage the transmission of the COVID-19 pandemic (Jiang and Stylos, 2021). Health precautions are being enforced to mitigate the continued escalation of the COVID-19 pandemic. Every person must adhere to the social distance protocol as a component of their health regimen. The COVID-19 pandemic has impacted various sectors, including the economic sector. Due to the pandemic, the global economy saw a complete collapse. The combination of social isolation and geographical lockdowns exerts a significant influence on individuals' behaviour. Individuals rarely venture outside their residences, mainly engage in remote work and education, and infrequently engage in social interactions. 

The COVID-19 pandemic that occurred in 2020 has marked a significant milestone in the history of human civilisation. This happens when customers behave in such a manner. Typically, individuals engage in many activities related to online buying. Individuals allocate a significant amount of time within their residences, so affording them ample occasions to do Internet investigations on various goods (Orîndaru et al., 2021). Specific consumers will continue to adhere to digital purchasing methods even after being exposed to information from digital media (completely online shopping). Particular individuals opt to make their purchases in person following the receipt of digital information (online browsing) in order to observe the functionality of the products personally. 

1.1 Problem Statement

The following study focuses on the central issue of COVID-19's impact on consumer behavior in the English retail market long term. Though the existing research focuses on short-term impacts, variation in consumption patterns in the long term life is left neglected. These two notions are further strengthened by empirical data from sources like Morgan (2020) and Vázquez-Martínez et al. (2021). The practical problem that the pandemic left people developed behaviours in which tactical marketing or business vending, policy-making, and investment decisions should carry out a reappraisal of the customer behaviour in the period after the pandemic. Such a gap, in theory, must be taken into consideration because it shows that there is a lack of longitudinal studies that could allow us to record the long-term consequences. The goal of this paper is to close these gaps, resulting in valuable arguments for the post-COVID-19 retail world. This study is not only practical but also a theoretical contribution to the relevant science. 

1.2 Research Objectives

The research objectives of this study are as follows:

1. To investigate the transformations that have characterised consumer shopping habits in England since the onset of the COVID-19 pandemic.

2. To examine the notable shifts in the frequency and modalities of consumer shopping in the post-pandemic landscape and to understand how these changes have manifested.

3. To analyse consistent alterations in consumer spending patterns across diverse retail sectors and identify discernible trends.

4. To assess the extent of migration from conventional physical retail establishments to online shopping channels and to determine the enduring nature of these shifts.

1.3 Research Questions

1. What transformations have characterised consumer shopping habits in England since the advent of the COVID-19 pandemic?

2. In the post-pandemic landscape, what notable shifts have occurred in the frequency and modalities of consumer shopping, and how have these changes manifested?

3. Across diverse retail sectors, have there been consistent alterations in consumer spending patterns, and if so, what are the discernible trends?

4. To what extent have consumers migrated from conventional physical retail establishments to online shopping channels, and what is the enduring nature of these shifts?

5. Are there visible demographic or geographic influencers shaping the preference for either online or offline shopping?

6. How have consumer behaviours transformed within distinct retail sectors, such as groceries, fashion, and electronics, in the aftermath of the COVID-19 pandemic?

7. Do these behavioural shifts exhibit uniformity across various sectors, or are there nuanced distinctions that warrant specific attention and exploration?

1.4 Significance of the Study

Regarding the impact which the COVID-19 pandemic will have on retail consumer behaviour in England and the context and implications for retail, this is a highly important and relevant matter. This research adds to the existing knowledge base by providing a holistic examination of the complex changes in consumer behaviours. On the part of companies, these insights are used to make tactical deliberations as the organisation adapts and innovates. Policymakers can rely on, as well as investors develop a better understanding of both short-term dynamics and long-run processes. Consumers will gain in trade-off with enhanced well-being and contentment. The core of the economy lies in facilitating resilience; the paper helps to create a passage that leads businesses successfully through the post-pandemic retail environment.

1.5 Justification of the Study

The decision to focus this study on retail consumer behaviour after the criticality and topical nature of the issue drives COVID-19. The development of new ways of consumption that COVID-19 has caused highlighted the importance of identifying the true extent of the changes in consumers' behaviour during the pandemic. One of the reasons this subject is vital in England’s context is that it is a very socially and economically diverse country, and retail plays a significant role in the UK economy. Investigating these changes offers legitimate, timely insight for retailers, public authorities, and investors who adapt to the changing retailing environment. The study's importance lies in the possible straightforward remedies and tactical suggestions that can be helpful to the stakeholders in the retail industry in England.

1.6 Scope and Limitations

This study provides a concentrated examination of customer shopping patterns in the retail sector within this particular setting, as its geographical coverage is limited to England. The era after COVID-19 is included in the period to make sure the information is relevant to the existing retail scene. Limitations may arise due to possible restrictions on the availability of data. Both the need for extensive datasets and the lengthier duration are being significantly impacted by these constraints. The study acknowledges that consumer behaviour is inherently dynamic and that some components may evolve as the research progresses (Lashgari and Shahab, 2022). This study aims to contribute significantly to the continuing conversation about post-pandemic consumer behaviour in England's retail sector by undertaking a comprehensive investigation within the defined scope.

1.7 Structure of the Dissertation

The dissertation is structured to facilitate a systematic exploration of retail consumer behaviour post-COVID-19. 

• Chapter 1: The introduction establishes the background, problem statement, and research objectives. 

• Chapter 2: the literature review critically examines existing research, providing the theoretical framework for understanding consumer behaviour shifts.

• Chapter 3 details the methodology, outlining the research design, data generation methods, and analysis techniques. 

• Chapter 4 presents the results and engages in a comprehensive discussion of findings, exploring trends and patterns. 

• Chapter 5 synthesises the research, draws conclusions, and offers practical implications, contributing to the ongoing discourse on post-pandemic consumer behaviour in England's retail sector.

CHAPTER 2: LITERATURE REVIEW

2.1 Introduction 

The literature review is a crucial part of this dissertation, with the goal of offering a thorough insight into post-COVID-19 consumer behaviour in the retail sector in England. The main goal is to thoroughly analyse current academic literature to establish a solid theoretical basis. Exploring different theories and models related to consumer behaviour, the literature review places the study within the educational landscape and highlights the changing dynamics in retail. Highlighting the significant effects of the COVID-19 pandemic, this section will analyse and evaluate research to provide a detailed examination of both immediate effects and lasting shifts in consumer behaviour. 

2.2 Virus SARS-CoV-2 (COVID-19) 

COVID-19, caused by the SARS-CoV-2 coronavirus, was first identified in Wuhan, China. The news quickly reached numerous other countries. In December 2019, Wuhan experienced significant anxiety levels due to the large number of fatalities from the virus. In early 2020, a global pandemic was declared as the virus rapidly spread to many countries. Many countries have imposed restrictions on travel within their borders, implemented measures to prevent the spread of the COVID-19 pandemic, and suspended classes and workdays due to the significant number of fatalities (Sayyida et al., 2021). This global pandemic has impacted various sectors, including the economy. Online shopping has significantly increased due to higher sales during the lockdown period. During the Movement Control Order period, online retailers like Happy Fresh and Lazada saw a 10% to 15% increase in sales. To control the virus and stop it from spreading, everyone must steer clear of individuals who are infected (Hüseyin Erbil Özyörük and Esra Civelek Yilmaz, 2022). Given the ongoing COVID-19 pandemic, it is impossible to predict when it will come to an end. In 2020, amidst the global spread of the COVID-19 pandemic, a new civilisation is beginning to take shape. People need to change their actions in order to control the spread of the infection. This change in viewpoint also happens when customers buy from brick-and-mortar stores.

Figure 1: COVID Accelerates Declining Retailed Industry (Roper, 2020)

Companies like J. C. Penny, Neiman Marcus and J. Crewe are also some of the household brands which filed bankruptcy in the last 4 weeks, and this is a clear indicator that the COVID limits we are seeing now are a real disaster for businesses. Recent forecasts estimate that a significant number of retail outlets could probably be forced to shut their doors within the next five years. It will be throughout the country. Experts' forecast for 2025 introduces a gloomy prediction that more than 100,000 stores will have shut down by that time because people craved online shopping and the overall decrease in in-store shopping. The Wall Street Journal could obtain the data after its release from UBS. The industry has suffered immensely, and most are in charge of office supplies. The retailers of this branch are predicting that due to fierce competition, around 50% of their number will be gone in five years (Roper, 2020). Manifold physical retail chains decide to close their shops very soon because of the quick interest rate upturn. This is the main reason why most retailers have high debt levels all the time. Numerous people rush into the re-opened stores as the social distancing requirements are lifted, causing a short-term increase in foot traffic at brick-and-mortar stores. While the coronavirus epidemic was the primary reason behind the decline in the shopping mall’s prosperity, this process began much earlier. The failure resulted from the competition with ever-growing new players like Amazon and eBay (Roper, 2020).

2.3 Consumer Behavior  

In the digital age, people's actions can be categorised into four distinct groups: in-store purchasing, exclusive online shopping, showrooming, and webrooming. There are two particular purchasing habits: pure physical shopping and pure online shopping. Both of these buying habits involve the customer only utilising a single channel to complete the transaction. "Pure offline shopping" refers to the act of seeking information and making purchases exclusively in physical retail stores. "Pure offline shopping" refers to the act of conducting all shopping activities in physical stores or locations without utilising online or mobile platforms (Purcărea et al., 2022). The process of purchasing items conventionally is referred to as "pure offline shopping." On the contrary, pure online shopping refers to the exclusive use of digital media throughout the entire purchase process. "Pure online shopping" refers to the act of purchasing items through digital platforms, as well as utilising digital media to gather information about potential purchases. 

According to Chang, Green and Cummins (2021), individuals who exclusively engage in internet shopping are referred to as "pure online shoppers," while those who solely engage in offline shopping are referred to as "pure offline shoppers." "Pure online" is the common term used to describe just people who buy only via online platforms. Nowadays, webrooming and showrooming are becoming increasingly common consumer behavioural trends that were revealed by the results of the research made by Kursan Milaković in 2021. Customers conduct two types of purchase activities, known by the names of showrooming and webrooming, each time they visit the store. Consumer behaviour in the modern world entails a combination of physical goods as well as virtual payment methods. In reality, before ordering an online product from an e-retailer, it is sometimes called "showrooming." In the words of Kulshrestha et al. (2022), "webrooming" consists of researching the product specs online and later purchasing in a physical store. Webrooming involves the use of the Internet to navigate the different profiles of other people. Other than webroomers and showroom workers who are focused on keeping their items in good condition and saving money. In 2018, approximately 51% of clients looked for web rooming, which means that they have researched products online before buying them in a physical store online (Li, 2019).  

3. Factors affect retail consumers.

Consumer behaviour is the epitome of many complex factors that give a good insight into the intricate nature of the decision-making process. The economy is the factor that induces powerful responses because consumers' ability to purchase products depends on their income level, current employment status, and cost of living (Smith, 2002). The psychological components, which include perceptions, attitudes, and motivation, have a stronger effect on consumers' choices (Solomon, 2020). Knowing the psychological factors which drive consumers allows companies to adjust their marketing strategies accurately. From the perspective of social and cultural factors, the most crucial elements are grouped into cultural backgrounds, reference groups, social class, and subcultures, which, in turn, positively affect consumers' values and preferences (Hofstede, 2001). Technology integration into the retail arena, thanks to digitalisation and having information in fingerprints, influences how we interact with retail greatly (Park, 2020). Demographic features, such as age, gender, and family structure, make the composition of the market structure more complex, reflecting the need to differentiate amongst a variety of consumer segments (Schiffman et al., 2013). Sustainability, along with ethical practices, are now the determining criteria that consumers search for before they brand a company as one that is true to their values (Belz and Peattie, 2012). Private factors consist of lifestyle selections and personal characteristics. On this premise, the behaviour of the customer is a very elaborate subject (Engel et al., 1995). The mixing of these myriad elements sets the tone for which companies must strategies to keep up with things like audience analytics, audience attraction, and audience retention. While retailers need to be conversant with the complex nature of consumer behaviours to be able to make strategies that connect perfectly with their audience and enhance loyalty, they need to be keen to change with the market evolution.

2.4 Short-Term Impacts of COVID-19 on Consumer Behavior

These days, customers' attitudes are more centred on the buying of necessities because of the new patterns of consumption that the pandemic has brought in. Zwanka's study in 2022 emphasises the shift in consumers' buying habits due to the rapid move to online platforms following the shutdown of brick-and-mortar stores. Businesses must stay flexible to adapt to changing customer preferences, as indicated by the Future Consumer Index, which reports a significant rise in trust in online shopping (Mehta et al., 2020). Several studies have suggested that the increased dependence on online shopping led to substantial changes in the retail industry during the lockdown period. The consultancy also notes an increased focus on physical store safety. In 2020, retail safety expectations changed due to a significant study that impacted customer behaviour in the UK. This body of work highlights a drastic shift in consumer behaviour. It focuses on the requirement of consumer trust in online and physical stores, the development of shopping environments and an increase in essential expenditure (Hesham et al., 2021).

2.5 Long-Term Effects

While the COVID-19 outbreak was taking place, researchers worked hard on dispelling the long-term impacts of the pandemic on consumer behaviour. Joshi and Brahme (2021) reported long-term changes that persisted throughout the entire duration of the epidemic, according to a thorough research study that they conducted. Consumers keep making their decisions around health and safety - soon to be the ultimate determinant of their purchase intentions. The retail industry is retracing its steps in accordance with the increasing Compliance demands brought about by these statistics in the face of changing customer patterns as time moves on. A recent study, specifically by Rahmanov et al. (2021), revealed that UK market customers are inclined toward online platforms rather than the old style where shoppers buy from local markets. This is a pointer to a shifting customer preference behaviour. The overall results of this study not only contributed to the gap in knowledge but also helped the concept of the nature of consumer behaviour patterns that emerged after the COVID-19 crisis (Tien et al., 2021). They illustrate the interaction between irreversible transformations and precise reshaping, which is evident in retail.

2.6 Emerging Trends and Future Directions

Due to the emergence of the coronavirus, consumers are changing the way they act, which is beneficial for the retail industry and may promote further growth. The most interesting conclusion is that e-commerce is still a preferred medium (Mehta et al., 2020). According to Alsharif et al. (2023), people are heading to the convenience and security of virtual places more and more. The wide-ranging effects of this trend prove how vital it is for companies to have a robust online presence and e-commerce strategies to adapt to the changing market. Research shows consumers assign higher value to ecology in their decision-making process. People are more and more willing to purchase things that are good not only for the environment but for society too. This demonstrates that people are no longer oblivious towards social and environmental problems—some shops sense and respond to how customer preferences evolve (Gursoy et al., 2022). Researchers who are interested in this topic should look into how complicated customer attitudes and behaviours are, especially when it comes to hybrid shopping experiences that include visiting stores and shopping online. Himeur et al. (2021) say that it would be interesting to look into how technologies like augmented reality (AR) and virtual reality (VR) affect how people make decisions. Staying on top of new trends helps the retail business stay relevant and adapt to the changing consumer landscape post-epidemic. The dynamic interplay among technology, sustainability, and shifting consumer values offers numerous research and strategic possibilities in the retail sector.

2.7 Conceptual Framework

2.8 Literature Gap

COVID-19 Research in the consumer behaviour literature has focused on the immediate effects; perspective is not available from the existing literature, and there is limited understanding of changes in consumer habits (Belz and Peattie, 2012; Solomon, 2020). The initial studies have some knowledge of the sharp movements. The literature does not provide research to systematically understand stable trends after the pandemic and the changes in consumer behaviour post-pandemic in the retail sector in the UK. In fulfilling the gap with this research, I will provide a panoramic of the over a longer period thus and offer, I hope, to what extent consumer has reverted to the pandemic. Fulfilling this gap research provides an understanding to business policymakers and investors that will be useful for lasting managing the consequences of the pandemic.

CHAPTER 3: METHODOLOGY

3.1 Introduction 

This methodology section aims to give an overall strategic direction and shape for the study that is going to examine the long-term impacts of the COVID-19 pandemic on retail consumer behaviour in England. This research will utilise a mixed-method design incorporating both quantitative surveys and qualitative interviews in order to measure statistics as well as sense perceptions. This mixed-strategical basis in which current trends and objectives will be researched is a better fit for the complex changes in consumer behaviors. For the quantitative surveys, which are completed in the Likert scale format, figures are received that can be processed with the help of statistics, detecting the trends and the patterns. Qualitative interviews are helpful for the substantial exploration of specific experiences on an individual level, which is a valuable addition to the quantitative findings. This methodological decision will set a solid research undertaking that is in line with the overall objective, which is to discover the long-lasting retail consumer behaviour changes in the post-COVID-19 era.

3.2 Research Design 

A mixed study that is built upon the pragmatism philosophy and its principle, i.e., inductive, provides an extra boost to the research project. The researcher may thereby critique the design thoroughly and truthfully explain why the design of the study was chosen. Particularly, the integration of both qualitative and quantitative techniques of the hybrid research design is employed, thus leading to the in-depth analysis of different aspects of consumer behaviours after the COVID-19 crisis in the English retailing sector. The thesis addresses a mixture of qualitative and quantitative techniques used to track emerging trends and patterns and, ultimately, the overview consisting of the complexities of post-pandemic consumer behaviours (Rybaczewska et al., 2021). Post-consumption surveys and interviews are fruitful tools that we will use in order to have a chance to cover various consumer views, opinions, habits and their change over time. A descriptive approach can capture the characteristics of change in consumption patterns over an elongated period by being detailed so as to support the researchers in interpreting and comprehending the societal changes elaborately.

3.3 Data Generation Methods

The research involves the use of different methods of data collection to examine the long-lasting influence of the COVID-19 pandemic on UK retail sector consumer behaviour in a detailed way.

• Surveys and Questionnaires (Quantitative Approach)

Surveys and questionnaires will be designed which would gather objective data from 30 respondents. A Likert scale type of question structure will explore changes in shopping behaviours and the preferences for online versus in-store environments as well as safety measures perceptions in the retail industry (Ahmadian et al., 2020). The diversity of the demography and the strategy employed in sampling is intended to ensure that the insights are sufficiently comprehensive and representative.

• In-Depth Interviews (Qualitative Approach)

The qualitative insights will be done through 5 in-depth interviews, which will be carried out with purposefully selected target consumers. The semi-structured interviews allow the capture of different angles on the emotional and practical changes during the post-COVID-19 experience by shopping (Tenny et al., 2017)

3.4 Data Analysis Methods

The analysis approach will include both descriptive and inductive methods, thus providing a holistic perspective on the implications of COVID-19 pandemic development for consumer behaviour in the British retail sector.

• Quantitative Data Analysis: Regression Analysis

The regression analysis is going to be used to discover the nature of the relationships and dependencies among variables. The study will focus on using regression models that will identify any relationships between the specific factors which may change, including age, location, and purchasing behaviour, the shift in consumer intent, the choice between channels (online and offline), and other relevant aspects. The approach was statistical, thus allowing for a more profound analysis of the quantitative survey data in order to locate the statistically significant predictors and patterns within the dataset (Krishnamurthy et al., 2017).

• Qualitative Data Analysis: Coding and Systematic Categorisation

The qualitative data collected from the deep dive interviews and customers will be analysed by carefully coding process. This is done by putting together related responses and pinpointing common themes or problems. At the same time, qualitative data analysis can be accessible through programming that implies meaningful outputs (Li et al., 2020). The order of the narration can play a crucial role in the objectivity and coherence of our conclusions, drawing out valuable consumer patterns.

3.6 Ethical Considerations 

This study is buttressed by a solid ethical framework so as to uphold the maximum standards of professionalism and transparency and honour all participants who will be involved in the investigation of the prolonged impacts of the COVID-19 pandemic on consumer behaviour in England (Hasan, 2023). Informed consent obtained from each participant and information to them about the research purpose, procedures, as well as risks or rewards is the mainstay of ethical behaviour. Hence, in order to safeguard the first of all, the person can leave the program at any stage without harm, even after many years of being there, the guarantee of their autonomy is provided, and the possibility of any external coercion presence is rendered minimal. The privacy of participants should be maintained at the utmost level, and proper measures should be taken to ensure that all the information is anonymously collected and secured with advanced data storage techniques. Only the research team members are to be issued the passcodes to access the raw data, and they will be permitted to access them. The data the team members use to report findings will be made meaningful in ways that the identity of the individuals who participated in the study is not compromised. 

The privacy protection of the competitors and the fact that there is no topic related to socially sustainable concerns will be the main focus. The subjects are the pattern of consumption and perception classes, which would be handled with much care to uphold the dignity of the participants. We envision truth-based reporting as the foundation of our mission and plan to offer undistorted facts and uncorrupted information only. Studies have proven that researchers in this field are well aware of the possibility that sometimes symptoms and side effects can occur and that they try their best to avoid any negative influence on the subjects of their experiment. The aspects of ethical evaluations and oversight are some of the most essential elements of research. The issues that might not be taken into consideration while collecting data scientifically will be immediately reviewed by the ethical review boards and adequately addressed by the appropriate authorities. The study makes a silent promise on ethics, which is of fundamental implication to the identification and understanding of the different forces that cause a shift in society's consumption patterns.

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Appendix A

Survey question

Appendix B: Interview Question